June 17 (Bloomberg) -- German Chancellor Angela Merkel’s
government signaled a willingness to loosen Greece’s austerity
requirements as long as the next government stands by its
obligations under a European Union-led bailout program.

German Foreign Minister Guido Westerwelle said negotiators
might consider giving Greece more time to rein in its finances
as exit polls in Athens showed pro-bailout New Democracy with a
narrow lead and in a position to form a majority coalition.

“I can imagine we could do something in terms of the time
frame, because the standstill that has taken place over the past
few weeks has done damage,” Westerwelle told broadcaster ZDF in
Berlin today. “But one thing must be clear: the treaties must
be valid in substance. They can’t be canceled or renegotiated.”

The hint toward a softening of Germany’s position echoes
similar comments from Rainer Bruederle, the parliamentary caucus
leader of Merkel’s Free Democratic Party coalition partner. At
the same time, Westerwelle said renegotiating Greece’s bailout
program is out of the question, because European leaders would
lose “credibility” with other countries under the bailout
fund.